Value added tax

Requirement

Most countries in the world have implemented VAT as the most common tax system for consumption.

M3 solution

The calculation, accounting, reporting, and reconciliation of value added tax is supported by generic functionality in M3 for online based or electronic VAT reporting.

In Brazil, VAT is not used, but a lot of taxation rules depend on the CFOP code, federation units, items, etc.

The CFOP code is supported on transactions to identify the taxes to be used.

These taxes are supported: ICMS, PIS, COFINS, IPI, PIS, ISS, IRRF, Repasse Tax, ICMS Tax Substitution and FCP tax Substitution in calculation, control and reporting.

Rates and rules are defined at different levels in M3: company, customer address, supplier address, item, federation units, etc.

Complementary invoices are used to manage additional corrections on taxes.

Configuration guidelines

Not applicable.